In what is a massive development for the industry, $3 trillion investment bank Goldman Sachs is reportedly set to convert its digital asset platform into a new company. Indeed, the firm is set to turn it into a blockchain venture, according to a Bloomberg report.
The bank is currently speaking with prospective partners, the report notes. Moreover, the new company will be created for larger financial firms to “create, trade, and settle financial instruments via blockchain technology.” The plans to spin out the existing platform will reportedly coincide with the development of new capabilities and use cases.
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Goldman Sachs to Create New Blockchain Venture Out of Digital Asset Platform
It has been a game-changing year for cryptocurrencies. Since January, the asset class has seen its overall prevalence skyrocket with institutional investment interest surging. With firms like BlackRock getting in on the emerging technology, it is more than proving its value and potential.
That is driving even more well-known firms to get involved in its development. Among them is Goldman Sachs, which is reportedly set to convert its digital asset platform into a new company. Specifically, the blockchain venture will look to help larger-scale financial entities settle financial instruments using the technology.
Source: Mint
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Goldman Sach’s global head of digital assets, Matthew McDermott, talked to Bloomberg about the idea. Although the talks are “in the early stages,” it already boasts a long-term vision. Specifically, they plan to execute a spin-out in the next 12–18 months, barring regulatory approval.
“It’s in the best interest of the markets to have something that is industry-owned,” McDermott said. To this point, trading platform Tradeweb Markets Inc. has already said it will collaborate with Goldman Sachs on commercial use cases. Therefore, the company has become Goldman’s first strategic partner in this endeavor.
